Wisconsin native, conservative critic of everything.
"Once abolish the God, and the government becomes the God." ---G K Chesterton
"The only objective of Liberty is Life" --G K Chesterton
"Fallacies do not cease to be fallacies because they become fashions" --G K Chesterton
"A man can never have too much red wine, too many books, or too much ammunition." -- Rudyard Kipling

Tuesday, October 26, 2010

The Problem With Banks

A unit of Assured Guaranty Ltd. sued affiliates of Deutsche Bank AG over $312 million of mortgage- backed securities that the bond insurer guaranteed and says were “plagued by rampant fraud and misrepresentations.” Assured Guaranty Corp. is asking a judge to force the bank to repurchase the loans...

...Assured said more than 83 percent of 1,306 defaulted loans examined in one of the transactions, ACE’s Home Equity Loan Trust, Series 2007-SL2, breached Deutsche Bank’s representations and warranties. In the second deal, Home Equity Loan Trust, Series 2007-SL3, 86 percent of the 1,774 loans breached the agreements, Assured said.

An officer of Citibank testified under oath that Bank officials KNEW there were rep/warranty problems in their bundles.

Further down post-road at Ticker, he opines that the lawbreaking of the Banks (and Treasury, by the way) may have repercussions.

There's a limit to the screwing of this sort that the people will take. I have no idea where it is. Neither does anyone else. The Politicians definitely don't; they're tone deaf to this sort of abuse, because most of them haven't bought their own groceries or pumped their own gas in 20 years. We have reported every time there's an election how "Politician X" didn't pay his 24 speeding tickets and as a result his license was suspended - but now he paid them and it's all ok.

If the people get into their head that not only politicians can do this sort of thing and get away with it when it comes to things like traffic tickets, but banks can literally rob the people with predatory lending and then enlist the courts to screw them a second time in unjustly evicting them from their house, there is a point where they will snap.

That point is where people vote from the rooftop.

Despite all the mewling and bleating from the WSJournal, it is fact that a number of Banks (and brokers--who were sometimes subsidiaries of the Banks) pulled all sorts of shenanigans in the subprime market.

So now they're foreclosing, but in many instances they don't have the proper paperwork. It was "accidentally destroyed."